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wasoxygen  ·  3214 days ago  ·  link  ·    ·  parent  ·  post: BOJ shocks markets with negative rates move

    maybe they shouldn't call them negative rates. It just sounds bad.

I agree. Negative interest rates get bad press, but are not bad per se, for two reasons that I can think of.

1. Nothing special happens at a zero rate of return. Keeping cash in the bank is likely to erode purchasing power over time whenever the interest rate is less than inflation.

2. Investors don't (or shouldn't) ask if an investment opportunity is "good" (perhaps by asking if it will result in more dollars later than now), they ask if an investment opportunity is better than their next best alternative.

    Maybe widdershins rates?

I like this!